Accessories & Financing

An Introduction to Car Insurance


Buying adequate car insurance is the responsibility of every car owner. It is also required by law. Car insurance is an agreement you make with an insurance company. You pay regular premiums, and the insurer agrees to pay for repairs and injuries up to the limits of your policy for any covered loss.

Insurance policies also offer to repair or replace your car and cover the medical expenses of your passengers and the costs of the other driver when you are at fault. If you didn’t have insurance, you’d have to foot all the bills, including any legal bills yourself.

Is It Legally Required?

Yes. Most states require all motorists to carry a certain minimum level of bodily injury and liability insurance that covers the medical expenses and auto repair costs of another driver when you cause an accident. The minimum required amount varies from state to state. But the ideal liability insurance cover should be at least equal to the value of all the property you own.

How Much Does It Cost?

The average annual insurance premium was around $1,005, according to a national study. But that’s just an average. The insurance premium you will pay depends on your age, annual mileage, claims history, coverage history, coverage type, and level, credit history, driving experience, driving record, gender, location, marital status, policy deductible, vehicle make and model, and vehicle use.


There are several types of insurance covers available. There’s bodily injury liability that pays for the medical expenses of the other driver and their passengers when you’re at fault. Personal property liability pays to repair or replace the other driver’s car or repair any other type of property when you cause an accident. Collision coverage will pay to replace or repair your car.  Comprehensive coverage pays for non-collision losses like storm damage or vandalism, or stolen vehicles. Medical coverage and personal injury protection can pay for you and your passenger’s medical expenses in the event of a collision or even funeral expenses and lost wages. Underinsured and uninsured motorist coverage pays your medical and repair bills if you’re hit by a driver without adequate insurance or even no insurance and in the event of a hit-and-run.

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